Question: Purchasing a building for $ 1 1 5 , 0 0 0 by paying cash of $ 2 5 , 0 0 0 and signing

Purchasing a building for $115,000 by paying cash of $25,000 and signing a note payable for $90,000 will
decrease total assets and increase total liabilities by $25,000.
increase both total assets and total liabilities by $115,000.
decrease both total assets and total liabilities by $25,000.
increase both total assets and total liabilities by $90,000.

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